Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE HELP ASAP THANKS IN ADVANCE!!!!******* (Related to Checkpoint 6.2) (Present value of annuity payments) The state lottery's million-dollar payout provides for $1.1 million to
PLEASE HELP ASAP THANKS IN ADVANCE!!!!*******
(Related to Checkpoint 6.2) (Present value of annuity payments) The state lottery's million-dollar payout provides for $1.1 million to be paid in 20 installments of $55,000 per payment. The first $55,000 payment is made immediately, and the 19 remaining $55,000 payments occur at the end of each of the next 19 years. If 6 percent is the discount rate, what is the present value of this stream of cash a. If 6 percent is the discount rate, the present value of the annuity due is $ 668,696.41. (Round to the nearest cent.) b. If 12 percent is the discount rate, the present value of the annuity due is $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started